Intro presenters Benefits of an energy efficient business

2. Agenda • Intro presenters • Benefits of an energy efficient business • How Milwaukee Energy Efficiency (Me2) makes energy saving upgrades affordable • Me2 financing products • Q&A and contact information

3. Presenters • Erick Shambarger • Deputy Director, Milwaukee Office of Environmental Sustainability • Chris Hackner • Me2 Commercial Project Manager

4. Project Sponsors Sister programs for Madison and Racine

5. Energy Efficiency: A Smart Investment • Energy efficiency projects can help cut your utility expenses • Improves your net operating income • Increases your monthly cash flow • Low risk investment

6. Energy Efficiency: A Smart Investment • Improved occupant comfort • Improved indoor air quality • Improved lighting quality • Improve reliability of building systems • Potential tax benefits • Market the “green features” of your property

7. Energy Efficiency: A Smart Investment Value of a Green Building (1) Green buildings have rental rates and selling prices 3% and 16% higher, respectively. (1) Source: Eichholtz, Piet, Kok, Nils, and Quigley, John M. "Doing Well By Doing Good? Green Office Buildings." UC Berkeley: Center for the Study of Energy Markets, (2009)

8. What is Me2 ? Milwaukee Energy Efficiency (Me²) helps you finance energy efficiency projects to improve your net income and cash flow from day one. Me² financing offers: • Lower interest rates • No money down financing • Potential to pass energy efficiency project costs to your tenants

9. Energy Efficiency Economics Example: $20k project, 20% utility savings, 0% down, 4% interest rate, 4 year term, 2.5% annual utility increases

10. Example Project • MillerCoors installed new dock heaters to create air curtain between warehouse and trailers • Project cost was $417,000 • Projected annual utility savings of $128,000 and maintenance savings of $20,000

11. Technologies • Lighting • HVAC and controls systems • Commercial refrigeration • Industrial processes • Steam systems • Renewable and water saving improvements when done in conjunction with energy efficiency

12. Eligible Properties • Non-residential property located in the City of Milwaukee • Restaurant and hospitality • Offices and other commercial properties • Multi-tenant buildings • Grocery and convenience stores • Industrial • Healthcare • Churches and non-profits • No gambling establishments, aquariums, zoos, golf courses, or swimming pools unless explicitly allowed by USDOE program guidance

13. Me2 Financing Products • Small Business Financing • Smart Security Financing • Clean Energy Financing • Interest Rate Buy Down

14. Small Business Financing • Summit Credit Union • No money down in most cases • No property lien • Low interest rates fixed for term of loan • Efficiency project size: $5,000 to $20,000

15. Smart Security Financing • Me2 deposits 20% collateral to your lender so you don’t have to! • Allows customers to finance 100% of project costs or other improved terms • Efficiency project size: $10,000 to $1 million • Best fit when property owner pays utilities • Work through your own lender • 1% origination program fee

16. Clean Energy Financing Program • Gives property owners whose tenants pay the energy bills a reason to make energy improvements • Energy efficiency loan repayments are deemed to be a municipal special charge of the City • Allows property owner to pass on project costs to tenants, who must benefit from lower energy bills • Efficiency project size: $20,000 to $5 million • 12 months P&I guaranteed to bank and collectable on tax roll • 0.50% origination fee

17. Interest Rate Buy Down • Federal grant to “buy-down” bank interest rate by 2-3% • 2% for lighting projects • 3% for other technologies or lighting plus • Can be used in conjunction with other Me2 financing products • Efficiency project size: $10,000 to $500,000 • Limited funds are available

18. Interest Rate Buy Down Example: Efficiency project Size: $125,000 Standard Interest Rate 7% = $2,475 monthly Me2 Interest Rate Buy Down = 3% New Interest Rate 4% = $2,302 monthly Total savings over 5 years = $10,385 $500 customer fee

19. Me2 Participating Contractors • Participating contractors: • meet program requirements • are committed to employing city residents and meeting federal American Recovery and Reinvestment Act requirements • Most major contractors are currently participating, with open enrollment of new contractors

20. Me2 Participating Contractors For most current listing, visit: www.smartenergypays.com/ contractors List shown last updated 9/26/2011

21. Program Steps • Work with a Participating Contractor or Focus on Energy representative to develop a potential energy efficiency project • Submit Me2 Commercial Interest Form • Refine scope of work with contractor and Me2 staff • Schedule meeting with Financial Institution • Submit Me² Commercial Program Application • Me2 staff approves project • Bank approves project with Me²credit enhancements • Close financing • Complete project and enjoy the savings and a better building!

22. Thank You For more informationwww.smartenergypays.comme2@milwaukee.gov (877) 399-1203 Milwaukee Office of Environmental Sustainability Erick Shambarger (414) 286-8556

23. Contacts Timm Heck Trade Ally Representative (414) 333-2368 theck@weccusa.org Chris Hackner Commercial Project Manager (608) 513-1180 chackner@weccusa.org Todd Conkey Program Manager (608) 249-9322 *123 tconkey@weccusa.org Cindy Moubry Contractor Compliance (608) 249-9322 *220 cindym@weccusa.org